Dividends on Preferred and Common Stock

Pecan Theatre Inc. owns and operates movie theaters throughout Florida and Georgia. Pecan Theatre has declared the following annual dividends over a six$-$year period: Year $1,$ $$48,000$; Year $2,$ $$144,000$; Year $3,$ $$216,000$; Year $4,$ $$276,000$; Year $5,$ $$348,000$; and Year $6,$ $$420,000.$ During the entire period ending December $31$ of each year, the outstanding stock of the company was composed of $30,000$ shares of cumulative, $4\%$ preferred stock, $$100$ par, and $100,000$ shares of common stock, $$20$ par.

Required:

$1.$ Determine the total dividends and the per$-$share dividends declared on each class of stock for each of the six years. There were no dividends in arrears at the beginning of Year $1.$ Summarize the data in tabular form. If required, round your answers to two decimal places. If the amount is zero, please enter $"0".$

Preferred Dividends Common Dividends

Year Total

Dividends

Total

Per Share

Total

Per Share

Year $1$ $ $48,000$ $

fill in the blank $1$

$

fill in the blank $2$

$

fill in the blank $3$

$

fill in the blank $4$

Year $2144,000$

fill in the blank $5$

fill in the blank $6$

fill in the blank $7$

fill in the blank $8$

Year $3216,000$

fill in the blank $9$

fill in the blank $10$

fill in the blank $11$

fill in the blank $12$

Year $4276,000$

fill in the blank $13$

fill in the blank $14$

fill in the blank $15$

fill in the blank $16$

Year $5348,000$

fill in the blank $17$

fill in the blank $18$

fill in the blank $19$

fill in the blank $20$

Year $6420,000$

fill in the blank $21$

fill in the blank $22$

fill in the blank $23$

fill in the blank $24$

$

fill in the blank $25$

$

fill in the blank $26$

$2.$ Determine the average annual dividend per share for each class of stock for the six$-$year period. If required, round your answers to two decimal places.

Average annual dividend for preferred $

fill in the blank $27$

per share

Average annual dividend for common $

fill in the blank $28$

per share

$3.$ Assuming a market price per share of $$323$ for the preferred stock and $$25$ for the common stock, determine the average annual percentage return on initial shareholders' investment, based on the average annual dividend per share for preferred stock and for common stock.

Round your answers to two decimal places.

Preferred stock

fill in the blank $29$

$\%$

Common stock

fill in the blank $30$

$\%$

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